US Treasury yields rose on Wednesday as investors awaited the February inflation report and monitored developments in the US-Iran war.
At 3:54 a.m. ET, the benchmark 10-year Treasury yield rose more than 2 basis points to 4.159%. The 30-year government bond also rose more than 2 basis points to 4.797%. The yield on two-year government bonds also rose 2 basis points to 3.59%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The February Consumer Price Index report is scheduled for release Wednesday morning, and investors will analyze it for clues about the health of the U.S. economy. Economists polled by Dow Jones expect the headline CPI to rise 2.4% annually.
“This is an important result as the recent oil crisis has dampened market expectations for the next Fed rate cut,” Deutsche Bank analysts said in a note Wednesday. “The Fed is widely expected to keep interest rates on hold at next week’s meeting, but today’s data will help shape expectations for subsequent decisions.”
Investors remain focused on the Middle East conflict, which pushed oil prices to $120 a barrel on Monday.
Since then, prices have come down but remain high.
Other economic indicators include housing starts and weekly new jobless claims on Thursday, and the personal consumption expenditures index on Friday.
